From B2B to B2G: The Facts You Need to Know

In 2021 it was reported that the business-to-business e-commerce market is projected to reach roughly $18.57 trillion by 2026. The question is, how does this compare to the B2G market?

The business world is full of subtle nuances, and sometimes it’s difficult to keep up with all of the information that’s out there. One key difference a lot of B2B businesses aren’t aware of is the difference between B2B to B2G. 

In fact, some businesses wonder what B2G is, this is because many businesses haven’t heard of it before. While there are a few key differences between the two, once you learn more about them the differences become clearer. 

So if you would like to learn what B2B to B2G is and what the key differences are, then read on to learn more.

What Is B2B to B2G?

Before we get into what separates these two styles of marketing, it’s important to get an idea of what each marketing style is. So let’s go through each of them now.

B2B is the process of one business selling products or services to another business and there are several reasons why companies use B2B services. 

One reason is that certain businesses rely on other businesses in order to provide their product or service. For example, mechanics may need car parts from other companies so they can deliver their service.     

The difference with B2G marketing is that it is the process of a business selling to government services. Again there are many reasons why businesses use this method of marketing. 

One of the biggest reasons why businesses market to government services is because the market is so big. So if you are a big business that offers a great service and you can provide it to the government, then you may have a lot of opportunities with government services. 

Selling Your Product B2B 

Successful B2B selling is all about connecting with other businesses and providing them with a great service. The style of marketing to other businesses is different from marketing to B2C marketing. 

One thing about marketing to other businesses is that they may require a larger amount of your product or service than a customer would. This can be because they have a larger audience and they need your products or services to help them sell their own. 

While both B2B and B2C businesses can be profitable when done right, B2B can be beneficial for creating long-term business relationships. Additionally, the business owners that you provide your product or service to may know other companies that they can refer you to. 

Overall, B2B is much more focused on how your product or service can help another business. This can be through helping them streamline their processes, assisting their online technologies, or directly increasing their profit.

Of course, these are only a few of the ways that businesses may need your services and there are many more reasons than this. 

Selling Your Product B2G 

A B2G service is much more focused on how you can help the government with its services. There are a whole myriad of ways that your business may be able to help them. 

For example, in today’s day and age, law enforcement agencies rely heavily on police officer scheduling systems, or also known as POSS scheduling software, to help maximize availability and flexibility of police officers . If you run a software company that targets law enforcement, then you may be able to use B2G to help the police agencies with its scheduling needs. 

B2G marketing is all about showing the government that you can help them with your product or service in an effective way. If you can demonstrate to a government service that you can do this, then you may be doing business with them sooner than you think. 

Advantages and Disadvantages of B2B vs B2G

While we have mentioned a few of the differences between B2B and B2G marketing, we still need to cover the pros and cons of each. So let’s compare the advantages and disadvantages of each marketing style.

One advantage to having B2B marketing is the potential future business that it can bring. Many business owners are in networking groups with other business owners, so if you have a great product or service word can spread fast. 

One disadvantage of B2G is that if you do get a contract to do work for a government service it may not be for long. However, with B2B you may create a business relationship that lasts a lifetime.

Having said this, an advantage of B2G is that governments go through periods where they heavily rely on certain products and services. For example, police agencies might use computer-aided dispatch software for different purposes. Larger cities benefit the most of this technology because it helps coordinate and dispatch the proper law enforcement. 

Also, they often have a large amount of funding that they can use if they need to. This means you may be able to negotiate with government services to get a big deal that could be very financially profitable for your business. 

Another disadvantage to B2G is that governments can take a long time to process contracts and it’s not always as reliable in both the short and long term as B2B is. 

Therefore for most businesses, B2B is a more favorable option that could bring your business more profits in the long run.  

Get More Insights on B2B to B2G

There are many different variables when it comes to B2B to B2G and it’s good to know which one will benefit your business most. A lot of businesses find it beneficial to review their marketing strategies.